claiming withholding tax on US dividends

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andied
Posts: 55
Joined: Wed Feb 09, 2005 11:21 am

claiming withholding tax on US dividends

Post by andied »

Dual citizen living in Can, receiving dividends from US stocks - there is a 15% withholding tax on these dividends. Does Can transfer this tax to the IRS and then I can claim it on my US return, or do I claim it as FTC on my Canadian return?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

This is tax remitted to IRS. On your Cdn tax, you use it as part of the US tax you claim as foreign tax credit. On your US return it is part of the tax remiteed to IRS that you count as a "payment".
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

If you have correctly informed your brokfer as to your US citizenship, they should be issuing your a 1099, with tax withheld indicated.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
andied
Posts: 55
Joined: Wed Feb 09, 2005 11:21 am

Post by andied »

Thanks nelsona, I should notify my brokerage RE my US citizenship; it is an account I have had for 20+ years and I have never been asked if I was a USC. It is only
from reading your advice that I have become aware of the possibility or requirement(?) for this notification.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

It would make your life easier to get a 1099
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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